Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1887-04-08
THE BEGINNING OF THE END.

THE BEGINNING OF THE END.
This journal from the outset expressed
the belief that the interstate commerce
law was not much to be feared, because it
contained within itself the seeds Of early
decay. We had given it three months
lease of life, at the most, believing that it
is impossible for legislation to invert the
laws of trade, or reverse the current of the
worlds commerce. The temporary ex-
emption made from the operation Of the
leng and short haul clause for the Southern
Railway Company, is a prima facie case in
favor of the differential rates necessary
upon roads operating between competing
points, and having local or non-competitive
points of discharge also. The right is
given to that company-pending inyesti-
gation-to charge less for a long than
short haul, the long haul being between
competitive points and the short haul
from and to points not touched by COM
peting systems of carriage. And in grant
ing this privilege the Interstate Commits
sion comedies, for the time being at least,
that water lines do compete with rail
lines, and that the latter cannot meet the
former at rates that are applicable for
hauls to places not enjoying competitive
advantages. Yet that remarkably obtuse
Journal, the San Francisco Chronicle, per-
sists in declaring that The low rates of
carriage by water are not due to the COM
petition of railway lines; that in fact no
such competition can exist On the very
heels of this comes the California system
Of railway lines, showing that it is about
to receive consis nments of goods from the
Orient, the carriage of which cannot be
undertaken under the schedules that are
the natural and inevitable results of the
new laS. That is to say, the law is
prohibitive of continental transit for goods
of the Orient. So, too, New England
system of railways has applied for ex-
emption from the long and short haul
clause, for the good business reason that it
must, in its export and import trade, meet
water lines upon level of rates or lose
the business. The law is not three days
old, yet from all over the country the cry
goes up that the "Aet" will operate to
punish the consumer and the shipper of
goods and work them irreparable damage.
The dispatches this morning convey the
additional intelligence that the Commits
sion has granted relief for ninety days to
the Grand Haven and Milwaukee Railroad
Company, and for reasons that expose the
absurdity of the law in all its nakedness.
That road operates boats between Mil
waukee and Grand Haven, on the opposite
shore, and carries freight between Chicago
and eastern points by that route. But
boats competing with it ply upon and
around the chain of great lakes, and TO
these the law does not apply, while all
rail routes also compete with it between
Chicago and the East. This is natural
competition, and as the Commission say,
the rates resultant as between Chicago
and Milwaukee are just and fair.
But on the route of the Grand Haven
and Milwaukee road are points between
which it charges a higher rate
than for the long haul, and such charges
are just and reasonable. Now, under the
new law these non-competing points could
complain that they are not given as low
rates as result from the competition be-
tween the terminal points, and for fear of
this complaint and its consequent penal
ties, the road must do one of two things
reduce the rate between the non-compet-
tive points TO the level of the long haul
or competitive rates, or abandon the
through traffic. Such abandonment could
not benefit the intermediate points in any
way, nor does the long haul, under COM
petition, injure them-while having no
competitive relations or advantages they
cannot reasonably ask for the rates result
ing from competition between other places.
Hence the Commission says TO the carrier,
YOU shall be relieved, at least until further
investigation, from the threat of the law.
The San Francisco Bulletin of Wednesday
very happily cited the experience of Eng
land in this matter of long and short
hauls by rail, and the illustration serves
to make clear the unwisdom of |
our legislation on the subject. In Eng |
land, says that journal
The long-and-short-hau business has been dis |
,45sed Of II accordance with the principles laid |
'5sfl ili the act of 1879. which were reaiiirlned
q. s,is susnt reports o. committees lad before |
T8,-,slns1i. The iir.; principle is tina. IN SIM
~ eIretrnsf an cs taeTe shall be similar rates
~ e thls r.iia ihe bill makes two exceptions
lssr,s Rcd .nay charge less IN Proportion for 1
ltf.esi., iAsa retali lots, or, as we sho,ld say.
- hlr ~, e... Its or fiiteen car loEs- tfsr iT
as9S.. SIS md lcconcly. I94ds may Charge !